Mod 1 Flashcards
Marketing Concept
How company wants to earn money
Product
• Goods • Services • Ideas • *Understand customer needs o Increasing value what is offered o Offering goods & services • Free gift packaging o Design, Packing
Price
• Given in exchange for goods or services • Waiting in long lines for restaurant • Giving blood • Rent • Fees • Charges o Lower admission
Price Skimming
• Pricing NEW product
• Pricing product high to increase profit
o ie: iPhone
Find out what consumers are willing to pay
If consumer thinks it is too high, can be lowered
Create an image of prestige
If price is lowered, consumers think they’re getting a bargain
• Price can be lowered
• Disadvantage = room for competition
Penetration Pricing
• Pricing NEW product
• Enter a market, price the product lower so more people will buy it
• Increase market share
o Consumers may switch brands if the price is low enough
o May discourage competitors
Leader Pricing
- Established products
- Pricing products below normal cost or below normal mark up to attract consumers to store
- Loss leader
Prestige Pricing
- High prices indicate high status
- If prices were lower, consumers would view as low quality
- Providers known for excellent service
Competitive Pricing
- Setting price of product to competitor pricing
* Use price as feature that differentiates
Promotion
Method to inform and influence customers to buy product • Sponsor • Presentation • Coupons o Directly @ point of sale • Samples • Displays • Shows • Exhibitions • Contest/Sweepstakes • Premiums – buy one, get one • Loyalty Programs o Like airlines
Advertising
• Paid form of promotion by a sponsor delivered through multiple media channels
Personal Selling
- Face to face presentation
* Long term relationships
Sales Promotion
- Activities that promote buying
* Is a direct incentive for consumer to purchase immediately
Public Relations
- Company goals with consumer interest
- Lobbying, publicity, special events
- Are least controllable
- Great deal of relationship-building
Social Media
- Think “buzz”
* Using Facebook, Twitter, Insta to generate buzz
Influencer Marketing
- Paying celebrities
* Paid brand advocates
E-commerce
- Use of company’s website to generate sales
* Think generate sales
Content Marketing
• Digital marketing, content marketing – creating and sharing online material
Guerilla Marketing
• Unconventional, innovative
Integrated Marketing Communications
• Immersive and targeted communication with customers to help move them through the various stages of the buying process
Omnichannel Marketing
• Unified and consistent communication with customers across all channels a company employs
Place
- method of getting the product from the creator to the customer
- the term “place” refers to the distribution of the product. Place might be a traditional brick-and-mortar store, or it could be online.
- Transportation
- Location
- Supply chain management
- Online presence
- Inventory
Vertical Marketing Systems
Cooperation between multiple levels of a distribution channel
Corporate Vertical Marketing System
- Single company owns ALL levels of production/distribution
* Partially owns levels
Contractual Vertical Marketing System
- Formal agreement
* Franchise
Administered Vertical Marketing System
• one member of the channel system effectively controls the system out of sheer power and size
PEST
political, economic, social, and technological
• provides a framework for looking at the influence of uncontrollable elements in the marketing environment
Price fixing (collusion)
o When two or more competing companies agree (or collude) on how much to charge for a product or service
ie: two coffee shops charging the same high price
Price discrimination
When a company charges different prices to buyers of the same product in order to maximize profit
Predatory pricing (undercutting)
When a company prices a product or service extremely low to drive out competition
Bait and Switch
When a company advertises a product for a low price and “switches” a customer to a higher-priced product
Price gouging
When a company has a monopoly on the market and prices products or services overly high to drive profit
